IRS Announces 2008 Standard Mileage Rates

Beginning Jan. 1, 2008, the Internal Revenue Service standard mileage rates for the use of a car (including vans and pickups) will be:

• 50.5 cents per mile for business miles driven.
• 19 cents per mile driven for medical or moving purposes

These new rates change the 2007 rates of 48.5 cents per mile for business purposes and 20 cents per mile for medical and moving purposes.

The IRS announcement explains the basis for the rates.

The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile; the standard rate for medical and moving purposes is based on the variable costs as determined by the same study. Runzheimer International, an independent contractor, conducted the study for the IRS.

The State of Texas will match the increase for travel beginning Jan. 1, 2008. Their announcement is found at https://fmx.cpa.state.tx.us/fm/travel/milerate/index.php.

The University of Texas at Austin will match these increases for all mileage occuring on or after Jan. 1, 2008. Please direct all questions to Marcia Boling, oa.mboling@austin.utexas.edu or 471-7821, or Cynthia Roberts, oa.croberts@austinutexas.edu or 475-7144.